Shariah compliant screening (quantitative method)

Us stock market

Business activities

Financial ratios

The five-per cent benchmark is applicable to the following businesses/activities:

  • conventional banking and lending;
  • conventional insurance;
  • gambling; 
  • liquor and liquor-related activities; 
  • pork and pork-related activities; 
  • non-halal food and beverages;
  • Shariah non-compliant entertainment; 
  • tobacco and tobacco-related activities;
  • interest income from conventional accounts and instruments 

Cash over total assets/ Cash over trailing 36-month average market cap

 

 

Debt over total assets/ Debt over trailing 36-month average market cap

Prohibited revenue from the above mention activities should not exceed 5% of total revenues

Prohibited revenue < 5%

Cash/Total Assets < 33%

Cash/Trailing 36-month average market cap < 33%

Debt/Total Assets < 33%

Debt/Trailing 36-month average market cap < 33%

This is following the SAC standards (/total assets) and the S&P standards (/trailing 36-month average market cap)

Malaysian stock market

Check for compliancy:

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